Stagecoach reports jump in profit and announces further investment in greener buses

Passengers board a Megabus bus in New York City May 8, 2014(REUTERS/Eduardo Munoz)

Public transport company Stagecoach reported a 9.4% revenue growth to £3.2bn (€4.5bn, $5bn) in the year to 30 April 2015.

The company, which holds stakes in South West Trains, Virgin Trains, Mega Bus and certain divisions of London's iconic buses, also reported that its profits were up 4.6%.

Chief executive Martin Griffiths said in a statement: "These are a solid set of results notwithstanding continued tight central and local government spending, and increased competition for public transport from the private car driven by lower fuel prices."

Stagecoach pushed up its dividend pay by 10.5% and paid shareholders 10.5p per share.

The company said it is planning to continue its increase in investments after growing its capital expenditure by 18.5% to £140.9m in the 2015 financial year.

"We are seeking to attract more passengers by investing over a further £80m in new greener buses, many equipped with free Wi-Fi, for our regional bus operations in 2015/16," the press release read.

The company added that it will also keep up its strategy to provide low fares in order to provide affordable access to work and other destinations by public transportation in local communities.